All of the following business organizations provide limited liability to their owners EXCEPT A) limited liability company. B) general partnership. C) S-type corporation. D) corporation. ANSWER B
Date: September 19th, 2020
________ variability in revenues and a/an ________ operating margin mean higher business risk. A) Greater; increasing B) Lesser; declining C) Greater; declining D) None of the above. ANSWER C
Date: September 19th, 2020
Which of the following items is (are) contained in the common policy conditions page of the commercial package policy? I. A description of the property that is insured. II. A provision describing the insurer’s right to audit the insured’s books and records A) I only B) II only C) both I and II D) neither […]
Date: September 19th, 2020
A well-diversified portfolio typically has systematic risk equal to about 40% of the portfolio’s total risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Advantages of private placements do NOT include which of the following? A) lower flotation costs B) funds which are available more quickly than through a public offering C) more financing flexibility D) investor protection through extensive regulation ANSWER D
Date: September 19th, 2020
Which of the following is (are) included in the common declarations page of a commercial package policy? I. A description of the insured property II. A listing of the causes-of-loss that are covered by the policy A) I only B) II only C) both I and II D) neither I nor II ANSWER […]
Date: September 19th, 2020
All of the following are typically advantages of private placements EXCEPT A) reduced flotation costs. B) speed. C) financial flexibility. D) the possibility of future SEC registration. ANSWER D
Date: September 19th, 2020
While the Homeowners Flood Insurance Affordability Act of 2014 rolled-back some premium increases in the Biggert-Waters Act, it included a provision to help fund the large deficit in the National Flood Insurance Program. The provision to help fund the deficit is A) a surcharge on every new home that is constructed in a flood plain. […]
Date: September 19th, 2020
Total risk equals systematic risk plus unsystematic risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Valerie’s home does not qualify for coverage under a standard homeowners policy. Valerie would like to have “open-perils” (all-risks) coverage on her dwelling and named-perils coverage on her personal property. Which of the following policies should Valerie purchase? A) Dwelling Property 1—Basic Form B) Dwelling Property 2— Broad Form C) Dwelling Property 3—Special Form D) […]
Date: September 19th, 2020
